The U.S. dollar briefly dropped to a fresh one-month low in the lower 139 yen range Wednesday in Tokyo amid speculation that possible slowing U.S. inflation data, due out later in the day, could prompt the Federal Reserve to dial back its aggressive rate increases.
Tokyo stocks were lower in the morning, weighed down by exporter issues that drew selling on the yen's strength.
The 225-issue Nikkei Stock Average fell 245.71 points, or 0.76 percent, from Tuesday to 31,957.86. The broader Topix index was down 12.85 points, or 0.57 percent, at 2,223.55.
Decliners were led by insurance, pharmaceutical and electric appliance shares.
